As Bitcoin Breaks $50k, Indicators Look Similar To The Rally That Lead To ATH

As Bitcoin finally breaks $50k, on-chain data shows BTC indicators look similar to the rally that lead to the ATH earlier in the year. Bitcoin Indicators May Suggest A Repeat Of The ATH Rally From Earlier In 2021 As pointed out by a CryptoQuant post, the derivative exchanges’ reserve has been going down, while the funding rate has been turning slightly positive. This means these indicators are now gradually recovering from the May crash, and the trends at the moment look similar to the pre-bull run buildup. The derivatives exchanges‘ reserve is an indicator that shows the total amount of Bitcoin present in derivative exchange wallets. These derivatives platforms are different from spot exchanges in that they offer services like futures contract trading. Related Reading | South African Man Loses $900,000 Worth Of Bitcoin After Accidentally Deleting Keys An increase in the value of this metric implies more investors are sending their BTC to these exchanges for selling purposes. In such a case, there may be a selling pressure present in the market. Similarly, a positive value might mean there is a buying pressure in the market. Here is the latest chart for the Bitcoin derivative exchanges’ reserve: The value of the indicator seems to be heading downwards As the above graph shows, the indicator’s value has been slowly moving on a downtrend as it recovers to values seen before the May crash. The chart a...